Alberta keeps finances on track as province rebuilds

The Redford government is successfully living within its means as a result of efforts to hold the line on spending.

“Our government has been making the right decisions to keep our finances on track, so Alberta can continue to drive nationwide economic growth. By holding the line on public sector wages and living within our means, we’re ensuring we have the resources available to rebuild from the flood and keep investing in our families and communities.”

- Doug Horner, President of Treasury Board and Minister of Finance

Second quarter results show that the province saw an operational surplus of more than $1 billion in the first six months of the fiscal year. However, spending on flood response and recovery has only begun to impact the province’s bottom line. By September 30, $351 million had been spent on flood assistance efforts.

“We are only now starting to see the costs of the flooding show up on our bottom line. In addition, the bitumen bubble is back from its holiday, highlighting the need to remain focused on building new markets and fiscal prudence as part of our Building Alberta Plan.”

Operational revenue is $20.3 billion in the first half of the fiscal year, $1.4 billion higher than expected. Similar to first quarter, this was due primarily to higher energy prices and increased investment income. Overall, there was a $1.1 billion operational surplus after the second quarter.

Operational expense was $19.3 billion, an increase of $247 million from the estimate due primarily to an increase in disaster spending offset by an overall drop in operating expense mainly due to delayed health grants.

Capital plan results were on track with the budget estimate, with capital spending at $2.4 billion. Direct borrowing for capital purposes was $1.7 billion.

By the end of the 2013/14 fiscal year, operational results are expected to range from a surplus of $250 million to a deficit of $250 million.

Alberta’s population has passed the four million mark; a record 105,200 net migrants came to the province during the 2013 census year.

Alberta’s real GDP is now expected to expand by 3.3 per cent in calendar year 2013, up from the first quarter forecast. The forecast for economic growth in 2014 has also been revised upwards to 3.5 percent.

Under the Building Alberta Plan, our government is investing in families and communities, living within our means, and opening new markets for Alberta's resources to ensure we're able to fund the services Albertans told us matter most to them. We will continue to deliver the responsible change Albertans voted for.

2013-14 Second Quarter Actuals for the six months ended September 30 ($ millions)